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House overvalued by 20k! How!!
niallmacmillan
Posts: 17 Forumite
Hi,
We have a detached 3 bed house in Essex that we bought for £250k just over a year ago. We revamped the whole house, new kitchen/diner all new bathrooms all new flooring and modernised the property. We put it on the market at £300k and got an offer straight away at 294k which we accepeted.
The buyers have had the survey on our property and it has come back at £275k! Even though there isn't any other house on the market like ours, all the other 3 bed houses are up for 300k and aren't as good spec as ours.
Is there no way we can fight this. I mean if they are willing to pay it and my house is in a great condition then what's the problem. How is the mortgage company taking a risk?
The whole chain has now fallen through as we depended on that extra bit of equity. We are now all out of pocket and we now all have to start again!
How is that fair?!?! You don't have this when buying anything else, its up to you how much you offer!
We have a detached 3 bed house in Essex that we bought for £250k just over a year ago. We revamped the whole house, new kitchen/diner all new bathrooms all new flooring and modernised the property. We put it on the market at £300k and got an offer straight away at 294k which we accepeted.
The buyers have had the survey on our property and it has come back at £275k! Even though there isn't any other house on the market like ours, all the other 3 bed houses are up for 300k and aren't as good spec as ours.
Is there no way we can fight this. I mean if they are willing to pay it and my house is in a great condition then what's the problem. How is the mortgage company taking a risk?
The whole chain has now fallen through as we depended on that extra bit of equity. We are now all out of pocket and we now all have to start again!
How is that fair?!?! You don't have this when buying anything else, its up to you how much you offer!
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Comments
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In this case, bank will provide loan upto the 275k. Your buyer needs to find extra cash (294-275)k if they want to buy it at agreed price.Happiness is buying an item and then not checking its price after a month to discover it was reduced further.0
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House overvalued by 20k! How!!
Err...... 'undervalued' ?0 -
Yes i know......i realised after and couldn't change it!0
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niallmacmillan wrote: »How is that fair?!?! You don't have this when buying anything else, its up to you how much you offer!
Why should it be fair, the bank either won't want to lend more than the house is worth or won't want to lend on a house which they view as over valued. You have several options:
1.Present your evidence to the Buyer/bank and ask for a re-evaluation.
2. Find another buyer who will use another lender and get a better valuation.
3. Find another buyer who has more equity so the valuation won't matter as much.
Of course all this assumes the survey is the problem not that the buyer is lying to try to get the price dropped!0 -
There is a fifth option, although it requires all the agents and buyers and sellers involved in the chain to act like grown ups.
So, there is a £19,000 shortfall. This could be split between everyone in the chain.IANAL etc.0 -
There is a fifth option, although it requires all the agents and buyers and sellers involved in the chain to act like grown ups.
So, there is a £19,000 shortfall. This could be split between everyone in the chain.
No gurantee all in the chain could contribute financially, might have very little to do with being `grown up`Never, under any circumstances, take a sleeping pill and a laxative on the same night.0
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